3PL spend growing at Fortune 500 firms

Friday, July 12, 2013

More than 85 percent of Domestic Fortune 500 companies utilize 3PLs, and the amount of money these companies spend on 3PL services has grown by 67 percent since 2005 to $250.2 billion, according to the Trends in 3PL/Customer Relationships - 2013 report recently released by Armstrong & Associates.
Companies in the technology industry are one of the largest users of 3PLs. They are expected to spend $71.1 billion this year on 3PLs, a sharp increase from the $66.8 billion spent in 2012. Within the technology category, companies specializing in electronics and electrical equipment spent the most of any technology company in 2012, running up a tab of more than $25.7 billion.
Many of the top companies use a number of 3PLs. The report found that Wal-Mart, Procter & Gamble, and General Motors each require the services of more than 50 3PLs. The average company also uses each 3PL for three distinct logistical services; management functions are the top use for 3PLs, the report found. - Jon Ross